New residential construction decreased in December

The U.S. Census Bureau and the Department of Housing and Urban Development recently reported new housing starts in December were 0.1 percent below the annual rate in November at 679,000 and 680,000 respectively. In addition, 611,900 housing units received building permits in 2011, a 1.2 percent increase from 604,600 in 2010.

Bob Nielsen, chairman of the National Association of Home Builders, said the latest housing starts data illustrates a demand for housing but obstacles, such as stringent lending requirements, continue to hold back the market.

"Policymakers should be doing everything possible to alleviate these problems and nurture the fledgling housing recovery in order to promote job and economic growth," Nielsen said.

The NAHB predicts single and multifamily housing starts will increase 17 percent in 2012. Even apartment construction is gaining strength, after reporting more than 50 percent growth in 2011.

According to the U.S. Census, privately-owned housing completions in December were 9.2 percent higher than November, and 7.1 percent above December 2010 numbers. The bureau estimates 583,900 housing units were completed in 2011, 10.4 percent below the 651,700 completed in 2010.

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